About this template
Most have heard of the Wall Street axioms "Santa Claus rally" or "Sell in May and go away". The thesis behind this bot is to exploit the seasonal tendencies that some stocks exhibit throughout the year. I have been working on this bot for probably about a year, and have several iterations, and have settled on this one. The "magic" is the selecting the tickers that tend to have a seasonal bullish pattern.
This is an extremely simple bot, looking for a risk per position of no more than $400 with a reward/risk greater that 25. I also decrease the DTE to 7 - 14 DTE. The bot selects the short put around a -.35 delta. Then starting with a $5 wide strike, will decrement the strike width by $1 until a reward/risk of 25 is found, or the $2 wide strike is reached. The trade attempt is aborted if a reward/risk of 25 is not found.
I know this bot was started during an extremely bullish period. The EMA filter of the price has to be above the10 day EMA is put in the help confirm the trend. I also had a bearish version of the bot running during the same period. While the results weren't stellar, it is just barely positive. This gives me confidence that the filter will assist in keeping the bot from opening positions during a downturn in the markets. I will note the number of available bearish tickers is significantly limited compared to the available tickers in the bullish version.
Bearish Seasonal bot:
Bot Settings
Each position can require up to $400 of capital. If you want to keep the total number of open positions to 10, I would have about $5,000 of capital. This amount can be reduced by reducing the number of open positions. This bot template is currently set for non Super Charged traders. If you have the supercharged bots, you can increase the Symbols, Daily, and Total Position limits to 25. I would allocate about $500 for each open position (5 open positions = 2500 bot allocation, 10 open positions = 5000 bot allocation).
Watch Lists
I will be creating and posting weekly (usually Sunday) watch lists that contain the bullish symbols for the week. These symbols in these watchlists generally will consist of the OA tickers that are in the S&P 500, have had positive returns for at least 9 of the last 10 years over21 to 30 day time period. I might reduce the time period to 19 days or so if there aren't a sufficient number of tickers in the 21 to 30 day period.
The watch lists will be named "Seasonal - Long - Week xx" where xx corresponds to the week number. Note: The week number can be determined in Excel by the formula "=weeknum(Date)" where Date is a date in a valid format.
Going forward, I am going to ramp up to 3 bots running with these tickers, with each bot running for about 21 days.
- Bot A will run lists from weeks 1, 4, 7, 10, 13, 16, 19, 22, 25, 28, 31, 34, 37, 40, 43, 47, and 50
- Bot B will run lists from weeks 2, 5, 8, 11, 14, 17, 20, 23, 26, 29, 32, 35, 38, 41, 44, 48, and 51
- Bot C will run lists from weeks 3, 6, 9, 12, 15, 18, 21, 24, 27, 30, 33, 36, 39, 42, 45, 49, and 52.
I don't want to have duplicate positions that can be opened when more than 1 bot contains common tickers. To avoid this, I will exclude tickers in the previous two bots that are in the current bot by using the "exclude" input in the Symbols.
Edit: 03/11/2024
Updated bot to add PDT Safety switch. Turn on to make bot PDT Safe.
End edit
Dashboard Graphs:
Dashboard Stats:
Close Position Analysis:
